No more night shifts: labor laws also apply to startups
in Startups, in the beginning, it's all about driving forward this one innovative idea. Studying sections of the labor law is probably the last thing that young entrepreneurs want to deal with when they are initially on a high. In the heat of the moment, laws and regulations such as health protection, working and rest times, protection of minors and regulations on night work are forgotten. This can end badly, because if it is ignored, employees will not only be dissatisfied and overworked, but they will also face sanctions.
Innovative spirit, euphoria and entrepreneurial drive do not protect startups from complying with labor law. Because the same rules apply to startups as to all other companies. Especially in the usually intensive initial phase, it is important that the maximum working hours are not exceeded. In normal office jobs this is 45 hours per week. This maximum working time must be adhered to on average over a period of eight weeks.
Overtime: Exceptions are permitted
However, the function and position in the company are crucial. The law does not apply to senior employees. The legislator assumes that the status of this category of employees is equivalent to the status of self-employed entrepreneurs. This means that protection under public law is unnecessary. Another reason for this freedom is that employees in managerial positions can often choose their own working hours. However, the exception only affects the working and rest time regulations, but not the health protection regulations.
If the situation in the company requires it - i.e. in exceptional cases - a company can also require employees without a managerial position to work overtime or overtime. This includes all working hours that exceed the specified maximum working hours. However, the overtime must then be compensated for by free time. If this is not possible, overtime must be compensated with a wage supplement of at least 25%.
Sanctions for non-compliance
If the labor law is not complied with and the cantonal labor inspectorate comes knocking, it can be expensive. Control of work and rest time regulations can be carried out ex officio or based on a report, for example from an employed person. If a violation of the working and rest time regulations is discovered, the administration can take action with warnings, orders or coercive measures. In extreme cases, it can even lead to expensive criminal proceedings.
Take care of the startup employees
The labor law not only serves to satisfy the legislator, but is also, above all, worthwhile for the employees. High-performing, satisfied and motivated employees are a company's most valuable resource. Especially in startups, it is essential that everyone pulls together. Failure to comply with labor law results in the team being overworked, exhausted and fatigued. This stress can have psychological and physical effects: burnout, exhaustion depression and stress-related illnesses are the result. If employees suffer from the employment conditions, this affects the entire workforce and damages the corporate culture. Above all, dissatisfaction leads to high fluctuation and thus to the loss of valuable know-how.
Conclusion
Even if the mood in startups is euphoric and the drive for action is high, startups would do well to observe the legal regulations. Not only from a legal perspective, but also to create an appreciative and caring corporate culture. A company should think long-term in its own interest and take care of its most valuable resource - people.
in Zurich, Switzerland.